Bitcoin, ethereum and other cryptocurrency prices have remained under pressure since a major sell-off in January.
The bitcoin price, now down around 50% from its peak of almost $70,000 per bitcoin in November, has found a temporary floor—with some bullish investors predicting a price rise is just around the corner. Ethereum, the second-largest cryptocurrency after bitcoin, and other smaller cryptocurrencies have also dropped, falling in line with stock markets and amid fears of strict new “national security” regulations.
Now, one crypto chief executive has revealed the price level he would be buying bitcoin “very, very aggressively”—and that non-fungible token (NFT) demand is key for ethereum price support.
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“I would not be surprised to see us put in a low around $26,000,” Forrest Przybysz, the founder and CEO of crypto-charting company CryptoStackers, told Insider. “In fact, that’s the level that I will personally be buying very, very aggressively.”
However, Przybysz warned the likelihood of a so-called crypto winter where prices remain subdued for years as they did through 2018 and 2019 is “moderately plausible” at this point.
Last month, analysts at banking giant UBS warned the looming prospect of Federal Reserve interest rate hikes and the end of pandemic-era stimulus measures could plunge cryptocurrencies into another crypto winter bear market.
Before the latest crypto crash, which wiped over $1 trillion from the combined bitcoin and crypto market, Przybysz predicted the bitcoin price would hit a “big, aggressive peak” of $120,000 in early 2022.
“It was reasonable to believe, or to assume, that there was opportunity to the upside of a parabolic nature,” said Przybysz. “Everything I do is based on a risk-reward model, and we have to understand the reward and measure it against the risk scenario. And it’s just that this time, we saw the risk scenario play out rather than the reward scenario.”
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Przybysz remains bullish, though, saying he “would not be surprised” to see bitcoin hit new highs “significantly before that,” and naming the U.S. midterm elections in November as a possible flashpoint.
Meanwhile, the booming collectible NFT market that has attracted big-name sports stars, Hollywood A-listers and Silicon Valley giants over the last year could help the ethereum price rally to a fresh all-time high of around $8,000.
NFTs—digital ownership certificates mostly registered on the ethereum blockchain—exploded through 2021, with just over $40 billion spent on NFTs, according to data from Chainalysis, a crypto analytics company.
“Just from a supply-and-demand perspective, in the next year or two, I’m actually quite a bit more bullish on ethereum than I am on bitcoin,” Przybysz said, referring to ethereum’s planned switch to a proof-of-stake validation model that has already seen ethereum supply begin to shrink.